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Arbitration Award Insurance
Protection for the value of an award through challenge and enforcement.
- A judgment or award wonThis cover
- A judgment against you
- Funder capital deployed
- Law firm fees and WIP
- Security for costs
- The opponent's costs
- Disbursements
- Own legal costs
Illustrative. The exposures a dispute can put on a balance sheet. What a policy responds to is set by its wording.
What is Arbitration Award Insurance?
Arbitration Award Insurance is a form of litigation risk transfer that may be arranged around an award you have obtained. Protection for the value of an award through challenge and enforcement. Terms, where available, are set case by case through underwriting.
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Schedule · specimen
Arbitration Award Insurance
Not a policy. A specimen to show how this cover is structured. Cover exists only when a policy is issued, on its own wording.
- Terms
- Terms, where available, are set case by case through underwriting.
- Protects
- An award you have obtained, depending on policy terms.
- Terms
- Limit, premium and conditions are set by underwriting on the specific risk.
Clause 1
The insured
Who it is for
Award creditors, their funders and investors who want to protect or monetise an award while challenges or enforcement are pending.
Clause 2
Insuring clause
What risks can be protected
The value of the award if it is set aside or annulled, and in some structures the risk that a state or state entity does not pay.
Clause 3
Operation of cover
How it works
Underwriters review the award, the grounds of any challenge at the seat or before an ICSID annulment committee, and the respondent's payment history.
Non-payment risk by states is also written in the political risk market, which has its own conditions.
Clause 4
Underwriting
Underwriting factors
The core assessment is the same as for International Arbitration Insurance: merits, quantum, a proportionate budget, recoverability and the legal team.
The points that weigh most for this cover are set out under "What risks can be protected" and "How it works" above.
Clause 5
Proposal documents
Information required
The standard presentation pack described on the International Arbitration Insurance page, plus the documents specific to this cover noted above.
Clause 6
Limit, premium and staging
Potential structure
- (a)Cover on a portion of the award;
- (b)Responding to set-aside or annulment, or to non-payment after a waiting period; and
- (c)Lenders or buyers may be loss payees.
Clause 7
Alternatives
Alternatives
- (a)Selling the award at a discount;
- (b)Enforcement funding; and
- (c)Negotiated settlement.
Clause 8
Territory
Jurisdiction notes
Forum rules apply as described on the International Arbitration Insurance page; the jurisdiction guides linked below set out the position forum by forum.
Specimen for explanation only. Terms, limits and exclusions are set by underwriting on each matter and by the wording issued.
Frequently asked
Can an arbitral award be insured?
Yes. Cover can protect the award's value against set-aside or annulment, and in some cases against a state or state entity failing to pay — the latter usually through the political risk market.
When is award insurance useful?
When the award creditor wants to borrow against, sell or rely on the award while a challenge or enforcement is pending.
Is Arbitration Award Insurance available for my dispute?
Availability depends on the merits, the quantum, the costs profile and the counterparty. Every risk is assessed individually and no cover exists until a policy is issued.
Does this quote a price?
No. Pricing is a function of the specific risk and is never quoted in the abstract. Nothing on this page indicates the cost or availability of cover.
Can it be combined with litigation funding?
Frequently, yes. Funding supplies capital; insurance defines the downside. The two are often structured together.
General information only. This page is not legal, financial, investment or insurance advice. Any insurance is subject to underwriting and to the terms of the policy wording issued.
Where to go next
Jurisdictions